Student overdrafts

Salom

When and how is it best to start paying the student overdraft back and what happens when I graduate in July this year with the 0%int.?

MrsManda

Depends on your bank and the T&Cs of your account.
Most student accounts move you on to a graduate account where you continue to get your 0% overdraft.

How long this lasts depends on your bank and may have conditions such as the 0% only continues if you pay a certain amount into the account each month.

Some banks remove the 0% overdraft in one go, others reduce it over time.

As an overdraft can be withdrawn without notice it's best to pay it off as soon as you can. Or at least have the money available in an instant access savings account so that you can pay off the overdraft as soon as it stops being 0% or is withdrawn completely.

Salom

It's a Lloyds account!

atypical

Salom wrote: »

It's a Lloyds account!

You'll be moved to their graduate account with a gradually reducing overdraft:
"An interest and fee-free tiered planned overdraft of up to £2,000 in your first year after graduation, £1,500 in the second year and £1,000 in the third year,"